Alphabet (GOOGL) and Apple (AAPL) have agreed to a new multi-year Gemini AI deal that will put the software on the next generation of Apple AI models. Per an Alphabet statement, Google’s models will power Apple’s future “Apple Intelligence” features, including the revamped Siri, set to launch this year.
“After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models,” Google said in a statement. “Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.” Analysts expect Apple to introduce its AI-enabled Siri in March or April.
Shares in Alphabet (GOOGL) rose after the announcement, and the company’s market cap also reached the $4 trillion mark once again before dipping back down slightly to $3.98T. Alphabet joins Apple, Microsoft, and Nvidia as the only companies to top the $4T threshold in market history. Additionally, numerous market analysts gave bullish calls for both Apple and Alphabet shortly after the AI deal announcement.
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“This is what the Street has been waiting for,” Wedbush Securities analyst Daniel Ives said in a client note Monday. Ives suggests that Apple’s “invisible AI strategy” has been an overhang on its stock. “We believe this is an incremental positive to both AAPL and GOOGL,” he went on to add. “It is a ‘validation moment’ for Google as a premier AI foundation model builder, he also said, saying it is a “stepping stone” for Apple to “accelerate its AI strategy into 2026 and beyond.” The Wedbush analyst went on to rate Apple stock as outperform with a 12-month price target of $350. Elsewhere, BofA Securities analyst Wamsi Mohan reiterated his buy rating on Apple stock with a price target of $325.